Remortgaging advice and brokerage in Edinburgh

Want to know more about remortgages?

There are many reasons for remortgaging your property. It could be you would like to remortgage for lower rates, betters deals, or guaranteed mortgage payments. Whatever your reason for remortgaging, we can help you along the way.

We can save you money and cut your costs with our remortgage packages. We offer deals with no upfront costs, free surveys, and free legal fees. We have access to every UK lender and can search through over 9,000 different mortgages to find you the most suitable deal. We’ll help ensure that you receive the best deal for your way of life, long and short term.

First Class Mortgage Advice understands that finances include more than just expenses and income; unlike many other establishments, we keep your goals in mind, too. Your bank may offer a couple of mortgage deals, but we’ll show you multiple options to select from. There is power in being able to choose exactly what option is best for your financial future. Why not give us a call today?

Big decisions need careful planning

Whether to remortgage your home is an important decision that we can help you with. First Class Mortgage Advice will ensure you get the best deal for both your current situation and with a view to the longer term. If you approach your bank they may offer you a mortgage, but the best way is to compare the thousands of mortgages available.

Making sure that you stick within the laws is very important, so we generally work in accordance with to make sure everything is legitimate. We work with leading banks and Building Societies, plus have access to specialist lenders with exclusive rates.

As we are independent, we always act in your best interests and our advice is free, so why hesitate to improve your financial situation? Get in touch with one of our independent advisors; we’ll explain the differences and narrow them down to the best deal for you – THAT’S A PROMISE.

More information on Remortgages in the Edinburgh area:

Remortgages In Edinburgh

Whether you’re wanting to secure a better rate or release equity from your home or portfolio, we are here to help you with what your remortgage requires.

As the years have passed, policies for mortgages have changed dramatically and we find lots of our clients are unsure what to do when their current deal ends or they wish to raise capital for improving their home, buy a new home, or for any other reason. Should they stick with their current lender? Should they look into changing lenders? Is this even possible?

These are all questions that First Class Mortgage Advice Edinburgh can help you answer!

We will help you address all of these questions by guaranteeing you get the most appropriate and affordable remortgage product that matches your specific requirements.

We will talk you through the various alternatives, the expenses involved, and the timeframe so you can be sure you will not incur unnecessary charges. We will even review all of your security needs to guarantee you, your income, your home, and your family are protected from any problems down the line.

Feel free to reach out to us today!

What Is Remortgaging?

Remortgaging is defined as the process of replacing your current mortgage loan with either a current or new home.

This new mortgage serves the purpose of paying off the former one. However, even though you went through the application process to take out the original loan does not always indicate that it will be easier to obtain a remortgage. You will still be required to submit quite a bit of documentation, pass detailed checks to determine if you can afford to pay off the new mortgage, and will most likely need to use a service to transfer the legal title of your property, although remaining with the lender you are with already may smooth out that process slightly.

Remortgaging In Edinburgh

Why should you remortgage?

One reason to remortgage is to obtain a more affordable offer. If you are paying your lender’s standard variable rate (SVR) currently, going with a fixed rate mortgage might save you quite a bit of money.

To find out what the potential amount of your savings might be, you need to determine what charges you will have to pay when leaving your current mortgage and what you might be charged to obtain the new one.

If you leave your current mortgage, it will likely levy an exit fee of between fifty and two hundred pounds, plus a charge for early repayment if you’re still in the promo timeframe.

There will typically be some charges attached to the new mortgage as well. This includes application and set-up fees, solicitors’ fees, and property survey fees.

Regardless, if you’re significantly decreasing your interest rate – for instance, going from a 5% SVR to a fixed rate of 2.5% – you’ll likely save yourself thousands of pounds long-term.

Another typical reason to remortgage is so that you can release equity. With remortgaging, you’re able to go to the lender borrow extra money.

There are a variety of reasons you may want to release equity with a remortgage:

Home enhancements – The value of your Edinburgh home can increase by using a remortgage for home improvements.

Debt consolidation – To reduce credit card debit, you can remortgage for debt. Your mortgage will use a much lower interest rate.

To obtain a buy-to-let home – Releasing equity may make it possible for you to pay for a buy-to-let residential or commercial property.

How much can remortgaging save you?

Remortgaging to a lower interest rate in a new deal means you may pay less and have lower monthly repayments.

For the sake of illustration, let’s say you have a ₤200,000 mortgage with an interest rate of 5% and have 20 years left on the payments. In this case, you will be paying nearly ₤80,000 over the next five years (monthly payments of ₤1,320).

However, with moving over a five-year fixed rate mortgage at 2.5% as part of the remortgage process, you would pay less than ₤64,000 over the same time period. That’s a savings of about ₤15,000 over five years.

When can I remortgage?

If you attempt to get out of your discounted rate, fixed rate, or tracker mortgage within the term you specified when signing up, an early repayment charge (ERC) is very likely. This is usually determined as a portion of what you owe, so the total could potentially be tens of thousands of pounds.

When the promotional term ends, you’ll automatically go back to your lender’s SVR, which most likely will have a substantially higher rate than you had previously. This is when the majority of people want to remortgage, so you’ll have to get started with the application before you miss the boat.

Getting a remortgage typically takes in between one to two months, though it may take longer if there are any problems, such as your application being rejected. A new deal with your present lender will likely help the remortgage procedure to go more quickly than if you decided to change lenders. However, the existing lender will still need to do an in-depth look into your finances to ensure that you can comfortably fulfill the payments.

In layman’s terms, it is typically a good idea to start the remortgaging procedure with at least a two-month window before the end of your current deal. If you manage to get a really good remortgage offer, you’ll find it will remain valid for somewhere in between three to six months, so if it’s all set up a few weeks in advance, you can rest assured you’ll be able to make the switch without any unnecessary drama or problems.

How to get the best remortgage offer

The best remortgaging offer is the one that has zero setup costs and the lowest interest rate – or, at the very least, very low setup costs.

To find the most affordable interest rate on a remortgage, a low loan to value (LTV) ratio will usually be required.

If the value of your house in the Edinburgh area has increased and you have spent a couple of years paying off your mortgage, the equity you likely have in your home will be significant, and you may have a very low LTV.

At this point, you’ll also have to decide if you wish to borrow more cash when you remortgage, as doing so affects your LTV.

Prior to searching into remortgaging, you should know how much equity you currently have. In order to figure this out, you’ll have to get your home’s existing marketplace value and remaining total on your mortgage debt.

You may want to check into how much your residential or commercial property should be worth. This can be done by asking for an appraisal from an estate representative. You should also confirm the amount still owed to your lender. Look at your most recent statement or check online for this. You can also ask for a redemption statement from your lender.

Pick your desired kind of mortgage. Do you want a discount rate, tracker, or fixed rate mortgage? Will it be interest only or repayment?

Try comparing mortgage deals online or speaking with a mortgage broker to find a new deal.

Consider the expense taking out a new loan after leaving your current one, factoring in all the fees. Will you save money by remortgaging?

Make certain payments are economical. When most of your earnings go towards upkeep expenses and mortgage payments, with not much left over afterwards, this is what is known as becoming house poor – which is never wise!

Get the brand-new mortgage and leave the rest to your solicitor.

Will I have the ability to remortgage?

Remortgaging is similar to securing a brand-new mortgage, even if you currently own your residential or commercial property or you’re wanting to work with your current lender on a remortgage. The lender’s requirements generally include a satisfactory credit report and the new mortgage’s affordability. Your income and all outgoing payments (consisting of other credit lines) must be evaluated before approving your remortgage.

Similar to any type of credit, the application for the remortgage will appear on your credit record whether or not you’re accepted. For this reason, it is best to attempt to avoid several concurrent remortgage applications. It can be expensive with upfront fees, and you could see a few hits on your credit record, which in turn may further decrease the opportunity of your remortgage acceptance.

Chances are good that you will be able to find a remortgage offer. However, depending on your finances or mortgage type, it may be difficult.

Remortgage with poor credit

If you have a bad credit score, remortgaging may not be your best alternative.

If your financial scenario has changed since you originally applied for a mortgage, you may wind up with an even worse rate than your current one. If that’s the case, it’s probably wise to wait until your credit history improves to get an improved rate.

Shared ownership remortgage

If you are wanting to increase your share of your home, it’s possible to get remortgage your shared ownership residential or commercial property.

There is not much difference between this type of mortgage and a basic one, but you’ll need to work with a lender who provides shared ownership mortgages, which might restrict your available options.

Help to Buy remortgage

If you have a Help to Buy equity loan, you may wish to remortgage your present property to leave the plan. By remortgaging, it may be possible to borrow more to fully pay off the equity loan.

You might also want to get a remortgage on your Help to Buy residential or commercial property if the period for your fixed rate mortgage is ending. Doing this might help you avoid being moved to a standard variable rate with your lender, which is often more costly.

However, not many lending institutions offer Help to Buy remortgaging, and many will not let you get one until you completely pay off your equity loan so you may have limited options.

Will a deposit be required?

Even if you got a 95% LTV on your first mortgage, by the time you can remortgage, you have likely developed your equity because you’ve paid back some of the principal through monthly payments.

If you have actually developed positive equity in your home, you will not require a deposit for remortgaging – you can utilize that equity instead. And if you’ve acquired some savings, you could likewise include those funds, thereby even further minimizing your LTV.

What issues might you have?

If the worth of your home has been reduced to less than the mortgage itself, your equity will still be negative. The amount you owe to your lender will be more than you would get with selling your residential or commercial property. In that case, getting a less expensive offer with a remortgage will be difficult, and you may be locked into the SVR your lender offers until the worth of your residential or commercial property goes beyond the mortgage. Another solution to getting out of this particular situation is to overpay just enough to decrease the mortgage quantity till it is less than the home’s worth. You may be a mortgage prisoner, which means you are stuck with your current deal.

Should I remortgage?

The decision to remortgage really comes down to this: will a brand-new mortgage save you money?

To work that out, compute what charges (if any) you will be paying to leave the existing mortgage, as well as any charges for a brand-new one.

As you exit your present mortgage, an exit fee of ₤50 to ₤200 will likely be assessed, plus an early repayment charge if you’re still within the promotional timeframe.

There will generally be some charges connected with the new mortgage, consisting of application and setup fees, the lender’s property survey costs, and solicitor charges.

If you’re minimizing the interest rate significantly – for example, from a 5% SVR to a 2.5% fixed rate – then you’ll likely save thousands in the long run.

Whether you’re moving, doing home renovations or improvements, or simply searching for a better rate on your mortgage, we’re here to help!
Making your move easy

You can look into whether you are eligible to receive the amount you need with an online Agreement in Principle. This is a good method, as it won’t affect your credit rating!

This has the advantage of setting up your mortgage at your own pace, and you have the convenience of uploading files when you’re ready and signing your mortgage files online.

However, keep in mind that if you do not keep up repayments on your mortgage, your home may be repossessed.

What does remortgaging mean for you? This is when you put in an application to move from your current mortgage lender to a new one. The word “remortgage” is often confused with the act of switching to a new mortgage type or different interest rate with your present lender.

What are the advantages of remortgaging? Transferring to a new lender allows for the possibility of getting a new interest rate or mortgage type for your current home or a home into which you’re preparing to move. Some individuals remortgage to borrow more money for a big purchase or home improvements. You may even be able to get a lower rate on the loan by remortgaging, as your loan value could be lower if you have paid off a large percentage of your mortgage since the payments started.

We promise to find you the best deal. Please give us a ring on: 0131 622 6622

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